MUMBAI: Kalpataru, a leading real estate developer based in Mumbai, has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising INR 1,590 crore.
The proposed IPO will feature a fresh issue of shares and will not include any offer for sale by existing shareholders. The primary objective of the capital infusion is to address outstanding borrowings and support general corporate activities. This strategic move marks a significant step for Kalpataru, which is known for its extensive footprint across the Mumbai Metropolitan Region, encompassing various micro-markets.
In its financial disclosures, Kalpataru reported a loss of INR 113.8 crore for the fiscal year 2024, a notable improvement from the INR 226.79 crore loss recorded in FY23. This reduction in losses comes despite a substantial decline in total income, which fell by 45% to INR 2,030 crore in FY24 from INR 3,717 crore the previous year. The sharp drop in income reflects the challenging market conditions faced by the real estate sector. ICICI Securities, JM Financial, and Nomura Financial Advisory have been appointed as the book-running lead managers for the IPO, bringing their extensive experience to the table to guide the offering through the regulatory and market processes.
